India Exim Bank has been given the green light by the Government of Kenya to locate its East Africa representative office in Nairobi.
- India Exim Bank is a financial institution that is fully owned by the Government of India.
- It provides concessional lines of credit to developing countries, including Kenya.
- Its presence in Nairobi is expected to provide a platform for Kenya to increase its dealings and financial cooperation with other regional and African countries.
Exim Bank has previously provided Kenya with financial assistance towards energy, textile, apparel, and agriculture sectors as well as support to small and medium-sized enterprises.
“The establishment of Exim Bank in Nairobi is a confirmation of the confidence in Kenya and the competitive edge of Nairobi as a regional financial hub. In the short term, Exim Bank will create employment opportunities for Kenyans and deepen their skills in the sector. In the long run, a collaboration between Kenya and the Bank will support national development priorities,” said Musalia Mudavadi, Prime Cabinet Secretary who is also in charge of the Ministry of Foreign and Diaspora Affairs in a tweet.
India is Kenya’s sixth-largest trading partner.
- Its exports to Kenya include pharmaceuticals, steel, machinery, and automobiles while Kenyan exports to India are largely primary commodities such as soda ash, vegetables, and tea.
- Exim Bank provides financial assistance to exporters and importers.
- It functions as the principal financial institution for coordinating the work of institutions engaged in financing the export and import of goods and services with a view to promoting India’s international trade.
Both countries have signed agreements on the promotion and protection of trade and investments, such as the India-Kenya Trade Agreement signed in 1981, under which both countries accorded Most Favoured Nation (MFN) status to each other.
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